US Foods is rounding out its second quarter on a positive note. In its second quarter financial report for 2019, the company announced sales were overall up, thanks to the changing foodservice landscape.
“Our business performance continued to improve with second quarter Adjusted EBITDA growth of 6.7%, double-digit Adjusted Diluted EPS growth of 12.3%, and continued expansion of operating leverage per case,” commented Chairman and CEO Pietro Satriano. “Total case growth also improved, thanks to strong performance with independent restaurants and improved growth with healthcare and hospitality customers. Our service platform continues to get stronger and we are confident in achieving our financial guidance for the year."
According to the report, case volume and net sales were both up, partly due to the increase in case volume and year-over-year inflation in multiple product categories, including produce, grocery, and poultry. While gross profits were up, thanks to margin expansion initiatives and an increase in case volume, operating expenses were also higher than last year, which was attributed to higher wage costs, acquisition-related costs, and depreciation expense.
Additional highlights included the following results:
However, while its financial results were mostly positive, the company reported that its net income was down, reportedly driven by an unfavorable year-over-year change in the LIFO reserve and higher operating expenses.
To read the report in its entirety, click here.
With the face of foodservice changing on the daily, how will US Foods continue to yield success as a result? Deli Market News will continue to report.